Henkel revises outlook for organic sales growth between 5.5% - 7.5% in 2022
Chemical

Henkel revises outlook for organic sales growth between 5.5% - 7.5% in 2022

Adhesive Technologies and Consumer Brands well positioned for capturing future growth and profit opportunities

  • By ICN Bureau | September 25, 2022

At recently concluded Capital Markets Day, Henkel's Management Board jointly presented the successes made in implementing the purposeful growth agenda, highlighting the growth and earnings potential of the two business units, Adhesive Technologies and the future Consumer Brands business.

"In view of the continued strong sales growth in Adhesive Technologies, today we have updated the outlook for fiscal 2022 for both the Adhesive Technologies business unit and the Henkel Group. In addition, we are continuing to work intensively on comprehensive measures to compensate as far as possible the impact of the drastic increase in raw material, logistics and energy costs on our earnings development," said Carsten Knobel, CEO, Henkel.

Henkel now expects organic sales growth of +5.5 to +7.5 percent at Group level in fiscal 2022 (previously: +4.5 to +6.5 percent). Organic sales growth of +10.0 to +12.0 percent is now expected for the Adhesive Technologies business unit (previously: +8.0 to +10.0 percent). For Beauty Care, Henkel continues to expect organic sales growth of -3.0 to -1.0 percent, in particular due to the implementation of the portfolio measures announced for 2022. For the Laundry & Home Care business unit, Henkel continues to expect organic sales growth of +4.0 to +6.0 percent.

The expectation for adjusted return on sales (EBIT margin) at Group level remains unchanged in the range of 9.0 to 11.0 percent. For the development of adjusted earnings per preferred share (EPS) at constant exchange rates, Henkel continues to expect a decline in the range of -35 to -15 percent.

Consistent implementation of the purposeful growth agenda

Henkel is pursuing an agenda for purposeful growth and has developed a clear strategic framework for this. Key elements of the strategic framework are a successful portfolio, clear competitive edge in the areas of innovation, sustainability, and digitalization as well as future-ready operating models based on a strong company culture.

In the course of 2022, Henkel continued to work consistently on the implementation of its growth agenda and made significant progress in all areas. With the announcement to merge Laundry & Home Care and Beauty Care into a new business unit Consumer Brands, Henkel is taking its purposeful growth agenda to the next level.

As part of the merger, Wolfgang König, who is currently responsible for Beauty Care on the Management Board and will head the new unit in the future, will also take over the management of Laundry & Home Care as of October 2022. Bruno Piacenza, who has been responsible for the Laundry & Home Care business unit since 2011, will leave the Management Board at the end of September.

"Since 2020, we have successfully and consistently driven forward the implementation of our strategic agenda for purposeful growth, despite an extremely difficult environment marked by the covid pandemic and the war in Ukraine. On this basis, we are looking ahead. With our Adhesive Technologies business, we are the global leader, offering innovative solutions for a wide range of industries, focusing on mega trends such as sustainability, e-mobility and connectivity. The merger of the Laundry & Home Care and Beauty Care businesses to Consumer Brands is an important strategic step for us. We are now creating a globally present multicategory platform with strong brands and world-leading market and category positions to increase the future growth and margin profile of our consumer businesses. I am convinced that with our two strong pillars, Adhesive Technologies and Consumer Brands, we will achieve our ambitious goals and continue to successfully implement our purposeful growth agenda with great emphasis," Knobel added.

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